Personal Effects Floater

What Does Personal Effects Floater Mean?

A personal effects floater is a type of insurance coverage that protects personal property for individuals who are traveling. It can cover items such as laptops, suitcases, jewelry, clothes, and other personal belongings taken on a trip. Personal effects floaters can be offered as either specified risk or open peril policies. It works in a similar way to a personal property floater, except it follows the person rather than the contents of a specific home.

Insuranceopedia Explains Personal Effects Floater

Tourists and frequent travelers commonly purchase personal effects floaters to insure valuable items that may be easily lost, damaged, or stolen while on a trip. However, individuals who own mobile homes and lack a homeowner’s policy may also find them useful. People who travel with expensive jewelry often compare this coverage against what their home or renters policy already provides, since renters insurance covers jewelry up to a set sub-limit that is usually too low for higher-value pieces.

Personal effects floaters are not as widely used in the property insurance market today as they once were, primarily due to the expansion of coverage options for personal property under homeowner’s policies. Before buying a separate floater, it is worth checking what the off-premises theft limit is on your existing policy, which varies quite a bit between the best homeowners insurance companies. Nevertheless, they remain a viable option for travelers, particularly those who carry many expensive items with them.